AtheroNova, Inc. (OTCMKTS:AHRO) Makes A Decent Gain

AtheroNova, Inc. (OTCMKTS:AHRO) was flying below our radar for quite a while, because it wasn’t attracting much investor attention, thus having low dollar volumes and almost no percentile movements in price.

Yesterday, however, was a different story. The company announced that it had some optimistic preliminary results from the Phase I clinical testing of their atherosclerotic medicine that is being carried out in Russia.

Along this we saw a financial report for the yearly period ended December 31, 2013, which didn’t encourage us a lot.

 

• cash: $266 thousand
• current assets: $288 thousand
• total assets: $308 thousand
• total current liabilities: $1.2 million
• revenues: $0 (no surprise considering they have no product yet)
• net loss: $7.8 million

 

What bothers us the most is the fact that the company is quite low on cash, considering the amount they have spent in the year. There will surely be a need for some funding looking at the current financial state, but what will be the cost.

If the company acquires funding through issuance of shares we might see some dilution. Still, the good news that came with the annual financial report were enough to distract people from the not-so-rosy financials of the company and provide for a good climb.

The company stock made a nice 41% jump, reaching a price of $0.51 on the highest volume in its trading history. The total amount of shares that changed their owners came to 939 thousand and managed to generate $448 thousand in dollar volume with the climb in price.

Considering the worries of whether the company is going to be able to continue the development of their drug, which is far from over, we reckon that the stock might get a correction in its price. This is the exact reason for which we would advise you to do your due diligence and weigh out the risks.

Alternet Systems, Inc. (OTCMKTS:ALYI) also made a good run recently, gaining 36% yesterday. 3D Eye Solutions, Inc. (OTCMKTS:TDEY), however, was the biggest winner of the day with a 263% gain.